Banking and Financial Services (Microfinance) Regulations, 2006

This document presents the The Banking and Financial Services Act, issued by the Government of Zambia to govern microfinance regulations. It is divided into eight parts.

Part I discusses the title, interpretation and application of the Act.

Part II discusses the authority of the Bank of Zambia, to call for information.

Part III discusses licensing, including:

• The prohibition of unlicensed microfinance services;
• Various considerations in licensing, such as application, determination, scope and duration, display and revocation;
• Restrictions on the transfer of license.

Part IV discusses the categories of microfinance institutions (MFIs), including:

• Services to be provided by deposit-taking as well as non-deposit-taking MFIs;
• Methods to cover losses;
• Change of category of license as well as prohibition of such change.

Part V discusses the governance of MFIs, including:

• Their structure and management;
• Systems of internal control;
• Qualifications of the director, suspension of officers, immunity of the Registrar, etc.

Part VI discusses the operations of MFIs, including:

• Capital needs;
• Insider lending and credit;
• Disclosures about borrowing;
• Issues of branches, closure, ownership, and control.

Part VII discusses the supervision of MFIs:

• Their inspection, submission of returns; display of balance sheet, supervision fee, etc.

Part VII discusses general provisions like:

• False documents, confidentiality, fees, offences, penalty, etc.